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Southern Corp. (an all equity firm) has 3 divisions: sugar production, packaging, and entertainment. The beta for the sugar production division is 0.80. The beta
Southern Corp. (an all equity firm) has 3 divisions: sugar production, packaging, and entertainment. The beta for the sugar production division is 0.80. The beta for the packaging division is 1.1. The beta for the entertainment division is 1.2. The entertainment division is evaluating a new project. The risk free rate is 4%. The market return is 10%. What is the appropriate discount rate to use when evaluating the new project? O 11.2% O 13.3% 15.0% O 14.0% O 12.0%
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